ICG prices €361.4 million; Europe pipeline buzzes; CLO mezzanine notes widen in secondary

By Cristal Cody

Tupelo, Miss., Aug. 1 – Intermediate Capital Group plc tapped the European primary market with a €361.4 million offering of collateralized loan obligation notes due 2027, according to a market source on Friday.

The St. Paul’s CLO V Ltd. vehicle placed the AAA-rated tranche of notes at Euribor plus 134 basis points.

J.P. Morgan Securities plc was the placement agent.

New euro-denominated CLO deals are expected since “several are currently being marketed,” Morgan Stanley & Co. LLC analysts Vishwanath Tirupattur and Mia Qian said in a note on Friday.

Market participants forecast about €10 billion to €15 billion of European CLO issuance for the year.

About €9.4 billion in 18 deals have priced through June, according to data compiled by Prospect News.

More than $72 billion of U.S. dollar-denominated CLOs have priced year to date with as much as $120 billion of total issuance projected for the year.

CIFC Asset Management LLC intends to bring a $626.5 million deal, according to a market source.

The CIFC Funding 2014-IV, Ltd./CIFC Funding 2014-IV, LLC transaction will price via Morgan Stanley & Co.

U.S. CLO secondary activity saw activity over the week, Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

“The CLO secondary market enters August just as it entered July – with healthy flows – but is somewhat overshadowed by the continual primary volume,” the Wells Fargo analysts said.

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